WiseTech, a developer of leading logistics execution software CargoWise, announced it has entered into a binding agreement to acquire E2open, a leading provider of SaaS-based solutions in the global logistics value chain, for $3.30 per share in cash, equating to an enterprise value of $2.1 billion. This deal will be fully debt-funded from a new syndicated debt facility and is subject to certain customary conditions precedent.
Founded in 2000, e2open is headquartered in Addison, Texas, with operations spanning over 20 countries worldwide. E2open offers a connected supply chain software platform that empowers companies to transform the way they manufacture, move, and sell goods and services. The cloud-based e2open platform connects over 500,000 manufacturing, logistics, channel, and distribution partners as a single, multi-enterprise network, tracking over 18 billion transactions annually.
E2open’s software combines trade and logistics networks, empowered by data, technology, and automation to provide a deeply valuable, mission-critical product suite allowing customers to optimize their supply chains by reducing costs, increasing visibility, and driving improved resilience.
The acquisition of e2open is a strategically significant opportunity for WiseTech to acquire a scaled and profitable leading provider in adjacent and complementary markets. It brings WiseTech’s customers, as well as their customers and suppliers, into an electronically connected multi-sided marketplace, extending the value we create for customers in logistics, Container Transport Optimization, global trade, and supply chain management. It also expands WiseTech’s customer base, adding a network of 500,000 connected enterprises, including major connectivity with ocean carriers and numerous blue-chip shippers. Aligning with WiseTech’s 3P strategy, which focuses on product, penetration, and profitability, this presents an opportunity to scale the product offering and capabilities, as well as drive revenue growth and cost optimization.
The deal is expected to be EPS accretive in year one, excluding synergies. It aligns with WiseTech’s disciplined and highly successful M&A approach, focused on high-quality assets that add depth, scale, network effects, and product capabilities.
E2open’s current structure across product groups and previously acquired businesses is also well suited to a phased approach to integration, treating them as a sequence of smaller integrations focused on the highest and best value order. And WiseTech will apply its proven capability and approach to ensure an efficient and value-optimizing integration process, preserving the strategic advantage of e2open’s connected partner network and differentiated product verticals.
The price, transaction costs, and working capital requirements will be funded through a new, fully underwritten debt facility totalling $3 billion. This new facility is structured as a syndicated debt facility comprising multiple tranches with staggered maturities of up to five years, providing funding and cost certainty while maintaining prudent liquidity and balance sheet flexibility. This lender group comprises a well-diversified mix of leading domestic and international banks, including six existing banks and three new lenders, reflecting strong support for the Transaction and WiseTech’s long-term strategic vision.
Advisor: Bank of America, Barrenjoey/Barclays, and Macquarie are serving as financial advisors to WiseTech, and Gresham as debt advisor.
KEY QUOTES:
“Acquiring e2open is a strategically significant step in achieving our expanded vision to be the operating system for global trade and logistics.”
“E2open brings to WiseTech several well established complementary products. This will enable WiseTech to create a multi-sided marketplace that connects all trade and logistics stakeholders to efficiently offer and acquire services, removing complex disconnected processes and driving visibility, predictability and cost savings through the value chain.”
“E2open also expands WiseTech’s product capabilities with an experienced team of people with industry expertise and innovative product development skills that will further accelerate our organic growth capability.”
“In bringing the two companies together, we see tremendous opportunity for synergies, efficiencies, economies of scale and enhanced customer benefits, which unlocks the potential in e2open’s suite of products. This is a great deal for WiseTech’s business and e2open’s shareholders, for all our customers, the industry and ultimately the end consumer.”
WiseTech Global Founder, Executive Chair, and Chief Innovation Officer Richard White
“E2open and WiseTech have complementary products across transport, logistics, supply and demand ecosystems, and both organizations are committed to improving the efficiency, productivity and security of global supply chains through better use of technology, data, automation and artificial intelligence. This strategic combination empowers our people, and our customers who make, move, and sell goods and services to unlock new levels of efficiency and sustainability. As the connected supply chain platform, we are excited to join forces with WiseTech to create a truly global, intelligent logistics ecosystem as we jointly lead the digital transformation of our industry.”
Andrew Appel, e2open’s Chief Executive Officer
